TeamWork’s Blog

Ho, ho, ho

Happy holidays.

We’re happy for the continuation of falling home prices making shopping for affordable houses a lot easier on the pocket book.

According to the latest report from the Florida Association of Realtors the Manatee/Sarasota area had a 13 percent drop in homes sales year over year for November, 482 this year compared to 556 last year.

Home prices dropped 35 percent from a median of $267,700 to $172,700. Hm mm, that was actually an increase of 2.2 percent over October according to the Sarasota Herald Tribune.

For a lot of people this may mean a half empty stocking. To me the stocking is half full.

The continuing drop in home prices is making it much easier for first time buyers to get into the market and for second home buyers to purchase that dream property they always wanted.

And yes lenders are still issuing mortgages.

So there is much to be thankful for this Holiday season in my mind. We’re actually bringing a lot of people priced out of the market back into it.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Everyone out there is talking about how poor the housing market is.

Well, like I always say that is like saying it is raining across the country today.

Let’s just look at the 100k to 200k single family home market in the Palmetto, Parrish area for instance. It is a popular price point as it is considered affordable by many.

If you look at the Trendgraphix breakdown for November you find year over year the number of homes on the market is down 12 percent.

The number of sold homes is down 7.1 percent and the number of pending sales is up 50 percent.

Take that out over two years and there has been a 8.3 percent increase in sold homes and a 285.7 percent increase in pending sales.

Now pendings sales are probably up a lot due to pre-foreclosures or short sales. Agents are required to put them in MLS as pending after they have an accepted offer that in fact may take months to close if they close at all.

The increase though in closed sales over the past two years is impressive. More importantly the inventory on the market is down to 8.1 months based on pending and 16.9 based on closed sales.

Back in January 2007 we had more than 35 months of inventory based on closed sales.

Hmm, makes you think maybe it isn’t raining everywhere and that possibly the sun is starting to shine in a few spots in our real estate market.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

So you are thinking of bargain hunting in Manatee County for under $200,000.

Get your running shoes on.

The hottest market is the 100k to 200k.

Frankly, from experience once you get under 100k in asking price, well, you need to be thinking of putting in a tidy sum of money to fix up the house or give up a desirable location.

Pending sales in November for the 100k to 200k market were up nearly 60 percent over last year. More than 130 percent over the last 15 months.

Those foreclosures and other bargains are driving the market in the affordable price range.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Just a little statistical update.

In the past 30 days (as of 12/09/08) there have been 205 properties sold in Manatee County.

Of those more than 140 sold for less than $250k.

That tells us, first that money is exchanging hands, and secondly that home buyers continue to look for the best bargains.

It also says the majority of people are looking for those homes in what we consider affordable first time home buyer range.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Heck did you see that great foreclosure in Palmetto going for….

Gone.

Yep, that is how fast the foreclosures are moving.

Anecdotally it is becoming the norm not the exception to have multiple offers on the good foreclosures within hours at the most days after they come on the market.

By good I mean good condition, great price, desirable location.

The lenders have finally got it. They are pricing foreclosures so low that they know they will most likely get multiple offers on them.

For professional buyer’s agents such as myself we are having to move extremely fast with our clients to get them the best deals.

Houses that even in this market appraised at more then 200k selling for 118k, well they don’t last long.

In the 100k to 200k market, which is the primary first time home buyer market, they need a competent real estate agent more than ever.

If we see exceptional deals for instance we share it within minutes to other teams members and then get on the phone to our clients.

Yea, it may sound like I’m blowing our own horn. Maybe. But the reality is that there is a “hot” real estate market in the ranges I’m talking about and if you snooze you loose.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343

The median home price in the Manatee-Sarasota area for October dropped 36 percent year over year.

I know I don’t have to say anymore.

According to an article in the Sarasota Herald Tribune the median home price is down to $169,000 in October.

We have not seen that pricing according to the article since May of 2002.

The silver lining in all this. Like I have been saying the lower prices go the more people can afford to get into the market.

Sales were up 3 percent over last year.

Enough said.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Housing starts are down.

Foreclosures are up.

Mortgage rates are down.

I have a smile across my face.

These things are all connected.

When people ask if it is a good time to buy. Think of a couple of questions.

Do you think housing prices have dropped? The answer is probably yes.

Do you think housing prices will ever go back up? If the answer is yes, then you have answered the question about is it a good time to buy.

The decrease in housing starts puts more pressure on the resale market, so that will help clear up the foreclosures eventually.

Foreclosures are helping keep the market prices down.

A combination of lower housing prices and lower mortgage rates means more people can afford homes which helps increase sale.

Yippee!

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

This is a message for both buyers and sellers out there.

There are lessons in the market for both.

Gary Keller, our company founder, recently talked in Orlando about the shifting market.

He started this company in a similar market in the 80s, possibly a little worse, as mortgage rates were in the double digits.

A ray of sunshine he shared with us for the Florida market is this.

There are three main items that affect home buying, income, mortgage rates and home prices.

During the boom income could not keep up with the rising home prices and we know what happened then.

The ray of sunshine is home prices have dropped and mortgage rates are affordable. First time home buyers are jumping back in to the market because now it starts to make financial sense.

For sellers the lesson is this. The 80/20 rule. In this buyer’s market 80 percent of the homes are overpriced 20 percent are priced right.

For the foreseeable future the prices will continue to drop on the 80 percent.

For the buyer’s the lesson is the 20 percent that are well priced and in good condition are still selling.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

There is no doubt that a lot of our business so far this year has been foreclosures.

For a while it felt like you couldn’t go anywhere without seeing one. More coming on the market everyday and more lenders going to the Manatee County courthouse to file suit for foreclosures every month.

Well this gravy train seems like it may come to and end soon. Fannie Mae and Freddie Mac are looking at a rescue plan.

Some of the major banks have already put a stop to foreclosures on principal residences and others are joining in.

What’s up with that?

Imagine renegotiating loans so that people can afford to stay in their homes instead of going through the all the expense of foreclosing on them. What a novel idea for the lending world.

Well this may be good news for homeowners, I tip my hat to them for sticking in there while the lenders finally came to their senses.

On the other hand for my investors and clients looking for a steal of a deal we’re going to have to get our running shoes on.

It doesn’t appear the investment homes are protected but the best of those are being snapped up in the under 200k range.

The higher end ones of course are moving a tad more slowly.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

So the under 200k market for decent foreclosures in Manatee County is getting a whole lot tighter.

Well what about the $1 million plus home with the million dollar view for half price or less?

Yep, they are out there. And they are screaming steal me!

Well, as in steal of a deal.

I recently saw a foreclosure on open bay which had sold for nearly $1.7 million a couple of years ago. We’re talking sunset views on three levels.

I mean 5,000 plus square feet under air.

Yes, it needs some up grading and yard work but heck the home is appraised at more than $1.5 million by the county property appraiser.

So what do you need to pay for this little piece of paradise. How about just a tad under $600k.

Yes, there is a Santa Clause.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com